Every Company Needs to Submit Your Form E
What is Form E? Who needs to file the Form E? What if you fail to submit Form E?
Borang E is an Employer’s (annual) Return of Remuneration for every calendar year and due for submission by 31st March of the following calendar year.
According to the Income Tax Act 1967 (Akta 53): –
“Every employer shall, for each year, furnish to the Director General a return in the prescribed form…”
Unless it has granted the de-registration status from IRB, otherwise every company, enterprise or partnership is obligated to file the said return; regardless number of Employees during or end of the calendar year.
It generally outlines the payroll information of the Company for the said calendar year: –
1) The number of employees being employed, including new and resigned;
2) Details for employees earning more than RM34,000 p.a. and above, who are known as taxable employees and subject to Schedular Tax Deductions (STD or commonly known as “PCB” in Malay language);
3) Total remuneration for each taxable employee, STD withhold and remitted;
4) Total the number of new employees.
*Monthly STD withheld from Employees has to be remitted to IRB by 15th of the following month.
So, what if you fail to submit Borang E? Failure in submitting Borang E will result in the IRB taking legal action against the company’s directors. A minimum fine of RM200 will be imposed by IRB for failure to prepare and submit the Form E to IRB as well as prepare and deliver Form EA to the employees.
In addition, every employer shall, for each calendar year, prepare and render to his employee a statement of remuneration (EA for private sector employees; EC for public sector employees) on or before the last day of February of the following calendar year for each employee to complete and submit his/her personal tax return.
However, it is always easier if you engage with services provider to help you in taking care of all these matters. At 3E Accounting, all experienced professional can definitely provide you optimum support. For more information and pricing details, feel free to check out on our Payroll Services.